Macro and Micro Macroeconomic and Term Paper

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Government decisions such as going to war obviously affect the industry, but other decisions, such as educational loans that enable students to go to school without the support of ROTC, policies regarding government contractors ability to move between the private and public sectors, and base closures will also have an impact upon industry health and the ability to attract individuals to the industry. Security legislation can open up new venues for some service corporations, in terms of background checks, for example, as occurred after 9/11. The industry is less immediate dependant upon microeconomic decisions of individuals, such as consumer spending on personal goods, although it is worthy to note that many defense plants also manufacture goods used in private industry or make use of goods from private firms, thus the expansion or contraction of prices in this sector can have an effect.

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Also, like any firm in microeconomic thought, the higher the price received upon particular goods, the greater the willingness to produce more and to hire more….....

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